SWOT analysis (translation from English swot analysis)- one of the most effective tools in strategic management. The essence of swot analysis is to analyze the company’s internal and external factors, assess the risks and competitiveness of the product in the industry.

Definition of SWOT Analysis

The SWOT analysis method is a universal method of strategic management. The object of SWOT analysis can be any product, company, store, factory, country, educational institution and even person. There are the following types of SWOT analysis:

• SWOT analysis of the activities of a company or manufacturing enterprise
• SWOT analysis of the activities of a government or non-profit organization
• SWOT analysis of the activities of an educational institution
• SWOT analysis of a specific territory: country, region, district or city
• SWOT analysis of a separate project or department
• SWOT analysis of a specific market or industry
• SWOT analysis of the competitiveness of a brand, product, product or service
• SWOT personality analysis

Companies often conduct a SWOT analysis not only of their products, but also of competitors’ products, since this tool very clearly systematizes all information about the internal and external environment of any organization.

The advantages of SWOT analysis are that it allows a fairly simple, correct look at the position of a company, product or service in the industry, and therefore is the most popular tool in risk management and management decision making.

The result of a SWOT analysis of an enterprise is an action plan indicating deadlines, priority of implementation and the necessary resources for implementation.

Frequency of SWOT analysis. It is recommended to conduct a SWOT analysis at least once a year as part of strategic planning and when forming budgets. SWOT analysis is very often the first business analysis step when drawing up a marketing plan.

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Four detailed video lectures on the SWOT analysis methodology will help you create your own analysis from scratch, even if this is your first time doing it.

Part one: SWOT analysis, determining the strengths and weaknesses of a product

Elements of SWOT analysis

Explanation of SWOT analysis abbreviations: Strengths, Weaknesses, Opportunities, T=Threats.

S=Strengths

Strengths of a product or service. Such internal characteristics of the company that provide a competitive advantage in the market or a more advantageous position in comparison with competitors, in other words, those areas in which the company’s product feels better and more stable than competitors.

The importance of strengths for a company in strategic planning: due to strengths, a company can increase sales, profits and market share; strengths ensure an advantageous position of a product or service in comparison with competitors. Strengths must be constantly strengthened, improved, and used in communication with market consumers.

W=Weaknesses

Weaknesses or shortcomings of a product or service. Such internal characteristics of the company that impede business growth, prevent the product from leading the market, and are uncompetitive in the market.

The importance of weaknesses for a company in strategic planning: a company’s weaknesses hinder the growth of sales and profits, pulling the company back. Due to weaknesses, a company may lose market share in the long term and lose competitiveness. It is necessary to monitor areas in which the company is not strong enough, improve them, and develop special programs to minimize the risks of the influence of weaknesses on the company’s efficiency.

O=Opportunities

A company's capabilities are favorable external environmental factors that can influence business growth in the future. Importance of market opportunity for a company in strategic planning: Market opportunity represents the sources of business growth. Opportunities must be analyzed, assessed and an action plan developed to exploit them using the company's strengths.

T=Threats

Company threats are negative external environmental factors that may weaken the company's competitiveness in the market in the future and lead to decreased sales and loss of market share. The significance of market threats for a company in strategic planning: threats mean possible risks for the company in the future. Each threat must be assessed in terms of the likelihood of occurrence in the short term, in terms of possible losses for the company. For every threat, solutions must be proposed to minimize them.

Drawing up a SWOT analysis

It is advisable to adhere to the following sequence of actions when conducting a SWOT analysis:

This SWOT analysis technique allows you to assess the company’s risks and opportunities in the most complete and detailed manner, and plan a working product marketing strategy:

• An analysis of the surrounding market environment of a product or service is carried out in the context of external and internal factors.
• Based on the analysis, business strengths, business weaknesses, threats and market opportunities for business are formed.
• The obtained parameters are entered into the SWOT matrix for ease of analysis
• Based on the SWOT matrix, conclusions are drawn about the necessary actions, indicating implementation priorities and deadlines.

In the process of conducting a SWOT analysis, involve people interested in making a decision, experts in various issues. An outside opinion will allow you to create a more objective analysis.

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Standard view of a SWOT analysis table

In the SWOT analysis table, it is advisable to indicate factors in order of priority.

SWOT analysis is an intermediate link between formulating the mission of an enterprise and determining its goals and objectives. Everything happens

in this sequence (see Figure 1):

1. You have determined the main direction of development of the enterprise (its mission)

2. Then you weigh the strengths of the enterprise and evaluate the market situation to understand whether it can move in the indicated direction and how best to do this (SWOT analysis);

3. After this, you set goals for your enterprise, taking into account its real capabilities.

SWOT analysis helps answer the following questions: - Are the company’s weaknesses its competitive vulnerabilities and/or do they prevent it from taking advantage of certain favorable circumstances? What weaknesses require adjustment based on strategic considerations?

What opportunities give a company a real chance of success by leveraging its skills and access to resources?

What threats should a manager be most concerned about and what strategic actions should he take to ensure a good defense?

So, after conducting a SWOT analysis, you will have a clearer idea of ​​the advantages and disadvantages of your enterprise, as well as the market situation. This will allow you to choose the optimal path of development, avoid dangers and make the most efficient use of the resources at your disposal, while simultaneously taking advantage of the opportunities provided by the market.

Even if you are sure that you are already well aware of everything, it is still better to conduct a SWOT analysis, since in this case it will help to structure the available information about the enterprise and the market and take a fresh look at the current situation and emerging prospects.

In addition, the results of the analysis and decisions made on its basis must be recorded and accumulated, because accumulated structured experience (“knowledge base”) is the basis of the management value of any company.

Correctly and timely strategic decisions today play a key role in the success of an organization. Ultimately, they have a decisive influence on the competitiveness of products and the enterprise as a whole.

Methodology for conducting SWOT analysis

In general, conducting a SWOT analysis comes down to filling out the matrix shown

in Figure 2, the so-called “SWOT analysis matrix”. The strengths and weaknesses of the enterprise, as well as market opportunities and threats, must be entered into the appropriate cells of the matrix.

Strengths enterprise - something in which it succeeds or some feature that provides additional opportunities. Strength may lie in existing experience, access to unique resources, the availability of advanced technology and modern equipment, highly qualified personnel, high quality of products, brand recognition, etc.

Weak sides enterprise is the absence of something important for the functioning of the enterprise or something that the enterprise is not yet successful in comparison with other companies and puts it in an unfavorable position. Examples of weaknesses include a too narrow range of products, a poor reputation of the company in the market, lack of financing, low level of service, etc.

Market Opportunity-- these are favorable circumstances that an enterprise can use to gain an advantage. Examples of market opportunities include the deterioration of competitors' positions, a sharp increase in demand, the emergence of new production technologies, an increase in the level of income of the population, etc. It should be noted that opportunities from the point of view of SWOT analysis are not all opportunities that exist in the market, but only those that the enterprise can exploit.

Market threats-- events the occurrence of which may have an adverse impact on the enterprise. Examples of market threats: new competitors entering the market, rising taxes, changing consumer tastes, declining birth rates, etc.

It should be noted that the same factor can be both a threat and an opportunity for different enterprises. For example, for a store selling expensive products, an increase in household income may be an opportunity, as it will lead to an increase in the number of customers. At the same time, for a discount store, the same factor can become a threat, since its customers, with rising salaries, may move to competitors offering a higher level of service.

A SWOT analysis should be conducted with the participation of all critical members of the organization. This concerns the general identification of weaknesses and strengths that should be clearly visible within the organization. However, this analysis should be as broad as possible. The most difficult thing is to identify the weaknesses of an organization, which may later appear in attacks by competing organizations. The members of the organization themselves speak about them very reluctantly.

SWOT analysis can be performed using the brainstorming technique. However, if the task involves assessing the leadership of an organization, this technique will be of little use because members of the organization may be afraid to express their real views in the presence of others. It follows that it is also necessary to use other techniques that provide anonymity to specific authors of the analysis. For this purpose, it is possible, first of all, to collect the analysis performed by each member of the organization, and then submit the results of general verification and discussion. Each of the points in all four directions of analysis can be assessed by ordinary members of the organization according to the following scheme: “yes”, “no”, and must be adjusted (how?).

The quality of the analysis can be improved by involving individuals outside the organization in conducting the analysis. True, they can only perform auxiliary functions, since they do not know the organization enough to independently distinguish between its strengths and weaknesses. However, due to the fact that they are not involved in the internal “alignments” of the organization, such individuals can act as impartial arbiters who are able to evaluate proposals, and also, by raising special questions, provoke the organization to a more thorough rethinking of its provisions and actions. Of course, these individuals must enjoy the undeniable trust of members of the organization, because during the analysis, facts may be discovered, the disclosure of which can be very dangerous.

When conducting a SWOT analysis, and in particular an analysis of chances and threats, previously conducted public opinion research should be used. Connecting an organization with a certain problem, issue, attributing competence to it in any area can be a good chance for it. However, from the organization's point of view, the assessment of certain actions as very unpopular can become a significant threat. Public opinion research can also confirm the analysis's findings regarding strengths and weaknesses. Even if an organization has a strong leader, but this person is very unpopular in society, it is difficult to attribute his presence to the strengths of the organization. It may turn out that such a leader leads the organization very well (and in this sense this is a strength), but it is his low popularity that is a threat to the organization.

Step 1. Determining the strengths and weaknesses of the enterprise

The first step of a SWOT analysis is to assess your own strengths. The first stage allows you to determine what the strengths and weaknesses of the enterprise are.

In order to determine the strengths and weaknesses of the enterprise, you need to:

1. Compile a list of parameters by which the enterprise will be assessed;

2. For each parameter, determine what is the strength of the enterprise and what is the weakness;

3. From the entire list, select the most important strengths and weaknesses of the enterprise and enter them into the SWOT analysis matrix (Figure 2).

Let's illustrate this technique with an example.

To evaluate an enterprise, you can use the following list of parameters:

1. Organization (here the level of qualifications of employees, their interest in the development of the enterprise, the presence of interaction between departments of the enterprise, etc. can be assessed)

2. Production (production capacity, quality and degree of wear and tear of equipment, quality of manufactured goods, availability of patents and licenses (if necessary), cost of production, reliability of supply channels for raw materials and supplies, etc. can be assessed)

3. Finance (production costs, availability of capital, rate of capital turnover, financial stability of your enterprise, profitability of your business, etc. can be assessed)

4. Innovation (here the frequency of introduction of new products and services at the enterprise, the degree of their novelty (minor or dramatic changes), payback periods for funds invested in the development of new products, etc. can be assessed)

5. Marketing (here you can evaluate the quality of goods/services (how consumers evaluate this quality), brand awareness, completeness of the assortment, price level, advertising effectiveness, enterprise reputation, the effectiveness of the sales model used, the range of additional services offered, the qualifications of service personnel).

Next, you should fill out Table 1. This is done as follows: the assessment parameter is written in the first column, and the strengths and weaknesses of the enterprise that exist in this area are written in the second and third. Table 1 provides several examples of strengths and weaknesses for the Organization and Production dimensions.

Table 1. Determining the strengths and weaknesses of your enterprise

After this, from the entire list of strengths and weaknesses of the enterprise, it is necessary to select the most important ones (the strongest and weakest points) and write them down in the appropriate cells of the SWOT analysis matrix (Figure 2). It is optimal if you can limit yourself to 5-10 strengths and the same number of weaknesses, so as not to experience difficulties in further analysis.

Strengths are especially important for a company's strategic perspective, since they are the cornerstones of strategy and the achievement of competitive advantages should be built on them. At the same time, a good strategy requires intervention in weak areas. An organizational strategy must be well tailored to what needs to be done. Of particular importance is the identification of the company's distinctive advantages. This is important for strategy formation because:

Unique opportunities give a firm a chance to take advantage of favorable market conditions,

Create competitive advantages in the market,

Potentially could be cornerstones of strategy.

Step 2: Identify Market Opportunities and Threats

The second step of SWOT analysis is a kind of “terrain reconnaissance” - market assessment. This stage allows you to assess the situation outside your enterprise and understand what opportunities you have, as well as what threats you should be wary of (and, accordingly, prepare for them in advance).

The method for determining market opportunities and threats is almost identical to the method for determining the strengths and weaknesses of an enterprise:

1. A list of parameters is compiled by which the market situation will be assessed;

2. For each parameter, it is determined what is an opportunity and what is a threat to the enterprise;

3. From the entire list, the most important opportunities and threats are selected and entered into the SWOT analysis matrix.

Let's look at an example.

The following list of parameters can be taken as a basis for assessing market opportunities and threats:

1. Demand factors (here it is advisable to take into account the market capacity, the rate of its growth or contraction, the structure of demand for the enterprise’s products, etc.)

2. Competition factors(one should take into account the number of main competitors, the presence of substitute products on the market, the height of barriers to entry and exit from the market, the distribution of market shares between the main market participants, etc.)

3. Sales factors (it is necessary to pay attention to the number of intermediaries, the presence of distribution networks, conditions of supply of materials and components, etc.)

4. Economic factors (the exchange rate of the ruble (dollar, euro), the level of inflation, changes in the level of income of the population, state tax policy, etc. are taken into account)

5. Political and legal factors(the level of political stability in the country, the level of legal literacy of the population, the level of law-abidingness, the level of government corruption, etc. are assessed)

6. Scientific and technical factors(usually the level of development of science, the degree of introduction of innovations (new goods, technologies) into industrial production, the level of government support for the development of science, etc. are taken into account)

7. Socio-demographic factors(one should take into account the size and age-sex structure of the population of the region in which the enterprise operates, the birth and death rates, the level of employment, etc.)

8. Socio-cultural factors(usually the traditions and value system of society, the existing culture of consumption of goods and services, existing stereotypes of people’s behavior, etc. are taken into account)

9. Natural and environmental factors(the climate zone in which the enterprise operates, the state of the environment, public attitude towards environmental protection, etc. are taken into account)

10. And finally, international factors (among them, the level of stability in the world, the presence of local conflicts, etc. are taken into account)

Next, as in the first case, the table is filled in (Table 2): the assessment parameter is written in the first column, and the existing opportunities and threats associated with this parameter are written in the second and third columns. The table provides examples to help you understand the list of opportunities and threats for your enterprise.

Table 2. Identification of market opportunities and threats

After filling out Table 2, as in the first case, you need to select the most important ones from the entire list of opportunities and threats. To do this, each opportunity (or threat) must be assessed on two parameters by asking two questions: “How likely is it that this will happen?” and “How much impact will this have on the business?” Those events are selected that are likely to occur and will have a significant impact on the business. These 5-10 opportunities and approximately the same number of threats are entered into the corresponding cells of the SWOT analysis matrix (Figure 2).

Step 3. Compare the strengths and weaknesses of the enterprise with the opportunities and threats of the market

Comparing strengths and weaknesses with market opportunities and threats allows you to answer the following questions regarding the further development of your business:

1. How can you take advantage of emerging opportunities using the company's strengths?

2. What weaknesses of the enterprise can prevent this?

3. What strengths can be used to neutralize existing threats?

4. What threats, compounded by enterprise weaknesses, should we be most concerned about?

To compare the capabilities of an enterprise with market conditions, the SWOT matrix is ​​used, which has the following form (Fig. 3). On the left, two sections are highlighted (strengths and weaknesses), into which all the strengths and weaknesses of the organization identified at the first stage of the analysis are respectively entered. At the top of the matrix there are also two sections (opportunities and threats), into which all identified opportunities and threats are entered.

At the intersection of sections, four fields are formed: “SIV” (strength and capabilities); "SIU" (force and threats); “SLV” (weakness and opportunity); “SLU” (weakness and threats). In each of these fields, the researcher must consider all possible pairwise combinations and highlight those that should be taken into account when developing the organization's behavior strategy. For those pairs that were selected from the SIV field, a strategy should be developed to use the organization's strengths in order to benefit from the opportunities that have appeared in the external environment. For those couples who find themselves on the “SLV” field, the strategy should be structured in such a way that, due to the opportunities that have arisen, they try to overcome the weaknesses in the organization. If the couple is on the “SIU” field, then the strategy should involve using the strength of the organization to eliminate threats. Finally, for couples on the SLU field, the organization must develop a strategy that would allow it to both get rid of weaknesses and try to prevent the threat looming over it.

To successfully apply the SWOT methodology, it is important to be able not only to identify threats and opportunities, but also to try to evaluate them from the point of view of how important it is for the organization to take into account each of the identified threats and opportunities in its behavior strategy.

To assess opportunities, a method is used to position each specific opportunity on the opportunity matrix (Fig. 4).

This matrix is ​​constructed as follows: at the top is the degree of influence of the opportunity on the organization’s activities (strong, moderate, small); on the side is the probability that the organization will be able to take advantage of the opportunity (high, medium and low). The ten opportunity fields obtained inside the matrix have different meanings for the organization. Opportunities that fall into the “VS”, “VU” and “SS” fields are of great importance for the organization, and they must be used. Opportunities that fall into the “SM”, “NU” and “NM” fields practically do not deserve attention. Regarding the opportunities that fall into the remaining fields, management must make a positive decision to pursue them if the organization has sufficient resources.

Rice. 3. SWOT Matrix

Example:

Microsoft SWOT analysis.

	I. Creation of new software II. Price drop III. Entering other markets	I. Antimonopoly policy II. Competition III. Declining demand
1. Reputation in the market 2. Large market share 3. Good staff 4. Secret technologies	I.- 3,4 II.- 2,4 III.- 1,4,5	I.- 2 II.-3,4 III.-4,5
1. Unfinished products 2. Low salary 3. Monopoly	I.- 1 II.- 1,3 III.- 2	I.- 3 II.- 1,2 III.- 1

A similar matrix is ​​compiled for threat assessments (Fig. 5) . Those threats that fall into the “VR”, “VC” and “CP” fields pose a very great danger to the organization and require immediate and mandatory elimination. Threats that fall into the “VT”, “SC” and “NR” fields should also be in the field of view of senior management and be eliminated as a matter of priority. As for the threats located in the fields of “NK”, “ST” and “VL”, a careful and responsible approach to eliminating them is required.

Rice. 4. Opportunity Matrix

Rice. 5. Threat Matrix

Threats that fall into the remaining fields should also not fall out of sight of the organization’s management, and their development should also be carefully monitored, although the primary task of eliminating them is not set.

As for the specific content of the considered matrices, it is recommended to identify opportunities and threats in three directions: market, product and activities for selling products in target markets (pricing, distribution and promotion of products). The source of opportunities and threats can be consumers, competitors, changes in macro-external environmental factors, for example, the legislative framework, customs policy. It is advisable to carry out this analysis by answering the following questions in relation to opportunities and threats in three areas:

1. The nature of the opportunity (threat) and the reason for its occurrence.

2. How long will it last?

3. What power does she have?

4. How valuable (dangerous) is it?

5. What is the extent of its influence?

To analyze the environment, the method of compiling its profile can also be used. This method is convenient to use to profile separately the macroenvironment, the immediate environment and the internal environment. Using the method of compiling an environmental profile, it is possible to assess the relative importance of individual environmental factors for the organization.

If you think that SWOT analysis is a boring theory from a marketing course, you are mistaken! Where do you start to analyze the situation in your business, what do you do first when you don’t know what to do or what to do correctly, how you weigh everything "Behind" And "Against"? Advice from friends and colleagues, find a solution on the Internet, act on it and boom? This is not enough, you need a real tool that will help you identify the strengths and weaknesses of the project and make the right decisions.

SWOT analysis will help you in this matter. You can not only weigh risks with its help, but also build strategies, do audits, and analyze complex decisions. In this article we will take a detailed look at the capabilities of this tool using an example and learn how to use it in practice.

A little history

SWOT analysis was first introduced to the world in 1963 at Harvard by academic Kenneth Richmond Andrews. At the conference, for the first time, this method of strategic planning was introduced into the arsenal of modern business, which is used by all marketers, analysts and business owners today. It is a mandatory stage of strategic planning and an excellent tool for auditing a company.

This method of analysis allows you to look at the business as a whole, at a separate cell of the company, business process or product from the position of weaknesses and strengths, advantages and threats, both internal and external. And also, many people use it in everyday life. Let's learn how to use it.

S.W.O.T. is an abbreviation from English of four words:

S (Strengths)– strengths. When describing the strengths of the object being analyzed, you should describe more of its own internal advantages. This is easy to do if you perform this task as a team and using the Internet. The more broadly and objectively you look at the subject of analysis (company, process, product, etc.), the more likely it is that a SWOT analysis will produce effective conclusions, so do not assign this task only to marketers or managers.

W (Weaknesses)- flaws. A similar situation with the shortcomings, remember all the disadvantages, all the unpleasant moments associated with the subject of analysis and write them down. Everything that weakens it and makes it unattractive, burdens it - fix everything. Objectively and only regarding the analyzed object.

O (Opportunities)- possibilities. Describe what opportunities the external environment gives you? What favorable external factors accompany development help your subject of analysis develop?

T (Threats)– threats. Record facts that negatively affect the development or promotion of your object of analysis from the outside. In most cases, this addresses the competitive environment and changes in the external market that may threaten you.

SWOT Analysis Template

The analysis is performed by compiling a table or 2 by 2 matrix in which evaluation criteria are entered in each cell, for example:

You can copy this example template into MS Word and print it for work.

There is an opinion that SWOT analysis is a superficial, inaccurate analysis tool based on the subjective opinion of one person. However, if you conduct an audit by a team of specialists from different fields, you can completely achieve an objective picture of the situation.

SWOT analysis using the example of a company

Now we will fill out the SWOT template or matrix with data from one company X, which is engaged in the auto business (selling new cars, spare parts, and repair services).

Let's start from the upper left corner with the strengths of the company that it has at the moment in time, then fill in the upper right field - we enter the internal existing shortcomings / weaknesses of the company there. In the lower left square we write the opportunities of the external environment that can be realized in the future, and in the right square we write threats and risks that are terrible for the business as a whole.

When you fill out the SWOT analysis matrix, analyze the upper squares from the side of the manager and from the side of your clients, and the bottom squares from the side of the company's management.

1. As we see in the green square with a plus, you need to record the company's resources. Personnel, equipment, software, finances, uniqueness, business processes, etc.
2. In the beige sector, we fix shortcomings within the company. Answer these questions:

• “What’s stopping you from selling more?”
• “What don’t you have compared to your competitors?”
• “Who is hindering development or does not meet the assigned competencies?”
• “What or what resource is missing to solve the problem?”
• “What’s not to like about your customers?”

3. The blue sector should reveal the opportunities that are provided to your company from the outside. Answer these questions:

• “What are the prospects for the development of your business line in the modern market?”
• “Is there an increase in demand for your product/services? Are the needs of your target audience growing?”
• “What are the trends regarding laws in your area of ​​business?”
• “Are there free niches where your company could make additional profit?”
• “Is there an opportunity to expand your product range?”
• “Who could help you develop your business? How?"

4. The most important threat sector. It is this that is a priority and will provide us with material for developing specific activities. To fill in the red sector you need to write answers to the questions:

• “What are my worst fears?”
• “I would have done ....., but if not .... »
• “The company will cease to exist if...”
• “What actions of competitors will affect the development of the company?”
• “What changes in policy and legislation are undesirable for business?”

You must answer these questions with a team consisting of managers and performers.

We get the result

What to do next with these records? The next step is to rank your posts by importance, weight and significance. In the example above, each entry is located under its own importance number - the first is the most important. Determine the three most important positions in the “Threats” block; first of all, you need to develop a strategic action plan for the company to eliminate or prepare for these threats.

Under the first point is: “Loss of dealership due to failure to meet sales plan.” The sales plan is an internal factor, and the fate of the company is still influenced by the importer, who analyzes the share of sales in the region and may deprive you of the right to sell cars of a certain brand. It turns out that this is an external factor that is associated with internal and external problems. Solution: draw up a SWOT analysis of the sales department, it will show the problems that do not allow you to sell enough. Objective #1 is clear.

Further. “Dependence of income on exchange rate fluctuations”. If your internal accounting is kept in foreign currency, you need to develop measures to reduce the impact of this factor on profitability, otherwise an increase in the exchange rate will destroy your margin (markup). For example: sell goods without coming to the warehouse, increase the turnover of goods (sell quickly), create an insurance fund in case of fluctuations, create an adaptive price list that will be automatically converted into national currency at the current exchange rate on the day of payment, etc.

Further. “Dependence on the policies and decisions of the importer”. Designate an employee who will monitor changes and sales rules regulated by the importer. Let him deal only with communication with the importing company. Find a contact person at the importing company who can help with advice and establish contact with him for long-term cooperation.

This data is entered into a table similar to this:

About the pros and cons of the technique

Advantage This method is the ability to obtain a general spatial picture of the state of the object of analysis, which will help make the right decision. SWOT analysis can be used in various fields and is accessible to everyone.

Disadvantage is the lack of accurate quantitative data that can show the dynamics of changes and the subjective factor in compilation.

Summary

This is how you can understand: what to do next, where to move, what is stopping you. A similar analysis can be carried out separately for each department, which will help identify more problems and, as a result, develop a strategy for further development or solution to the problem. The effectiveness of a SWOT analysis depends on the objectivity of the people who compiled it, as well as on the number of questions (coverage of the problem or condition). The more questions, the deeper you will touch on the problem, the more auditors, the more questions and subtleties you will be able to work out.

As you can see, SWOT analysis is a fairly powerful marketing tool that allows you to create a competent business development strategy and correct existing shortcomings.

From this article you will learn:

• What types of SWOT analysis method exist?
• When should you not use the SWOT analysis method?

The SWOT analysis technique has become very popular due to its simplicity and wide applicability. With its help, you can assess the likely consequences of rational decisions in almost any area: both in business when developing a company development strategy, choosing a marketing policy, etc., and in private life. The SWOT analysis method assumes that the situation has been studied and understood before making a decision. Let's take a closer look at it.

What is the essence of the SWOT analysis method?

SWOT analysis is a way to assess the current situation in a business and the prospects for its development, identifying four key aspects: Strengths, Weaknesses, Opportunities, and Threats.

Two of them – strengths and weaknesses – characterize the state of the company’s internal environment at the time of analysis. The remaining aspects - threats and opportunities - relate to the external environment in which the business operates and which the entrepreneur or head of the company cannot directly influence.

The method of conducting SWOT analysis allows you to describe the situation clearly and structuredly, to draw a conclusion about whether the company is developing in the right direction, what risks should be protected from and how exactly to do this, what is the potential of the enterprise.

The SWOT analysis method is based on four main questions:

1. What can a businessman (organization) do?
2. What would he like to do?
3. What is even possible in the current conditions?
4. What actions does its environment – ​​clientele, partners, contractors – expect from the company?

By answering these questions, you can determine:

• the advantages of the company, its trump cards that can be used in the development strategy;
• vulnerabilities that can be eliminated or compensated;
• prospects, open paths for the development of the company;
• dangers and ways to protect yourself from them.

Why do you need the SWOT analysis method?

SWOT analysis is a simple and universal method, widely used in business and beyond. In business, when planning and developing a strategy, it can be used either separately or in conjunction with other marketing tools, which makes it very convenient for company managers and private entrepreneurs.

Outside of business, the SWOT analysis method allows you to identify priority areas of effort (this applies to both professional and personal development), find your true life goals and priorities in work activities and relationships.

In relation to business, SWOT analysis is used to:

• collecting, summarizing and analyzing information about competitors using Porter models, PEST and other marketing methods;
• creating a step-by-step plan for implementing the business strategy, working out its main directions and appointing persons responsible for implementation;
• competitive intelligence (searching for the strengths and weaknesses of competitors) to form an effective development strategy.

Thus, wherever it is necessary to highlight the strengths and weaknesses of something (commercial activity, enterprise, personality), there is a place for the SWOT analysis method. Its product can be either a business strategy or a program for professional or personal growth.

Types of SWOT analysis method

1. Express version of SWOT analysis. It occurs most often and is used to detect the main strengths of a company and its vulnerabilities. External threats and opportunities are also identified. This type of method is the easiest to use and gives a clear result.
2. Summary SWOT analysis. It focuses on accounting and systematization of the main indicators of business performance at the current moment and its prospects in the future. A summary SWOT analysis is good because it allows you to quantify factors that are identified by other methods included in the strategic analysis tools, and formulate a strategy and action plan aimed at achieving the main goals of the company.
3. A mixed SWOT analysis is an option that combines the first two. There are at least three varieties of it, in which the influencing factors are structured in the form of tables and form a cross matrix. However, the analysis of these types does not provide a quantitative assessment of certain indicators. Thanks to the summary SWOT, you can deeply explore the data obtained and come to an accurate result.

SWOT analysis method as an example

The main matrix of SWOT analysis is as follows:

Let's consider this situation: an individual entrepreneur is going to sell pies to grandmothers in small batches (and they, in turn, will resell them to the final buyer).

Here's how to apply the SWOT analysis method to it:

Note that if the target audience is, for example, schoolchildren buying pies for themselves (and not grandma-traders), then the SWOT analysis needs to be carried out again, since the source data has changed.

Project analysis using the SWOT method

First of all, decide what goals you are going to achieve through the method, what tasks are facing you. If the project is devoid of goals and is vague, the SWOT analysis will fail: there will simply be nowhere to get the source data.

Find potential strengths in your future (or existing) business. Make a complete list of them and start analyzing each of them. What characteristics and features make your idea realistic and promising? Are the means and tools with which you intend to implement your strategy effective, and in what way? How good an entrepreneur (or leader) are you? What resources and assets are available to you? What do you manage to do better than your competitors? In general, conduct an audit and assessment of your capabilities.

Then, using the same method, you need to analyze the shortcomings of the business project under consideration. What factors hinder the solution of current problems? What business skills do you personally lack and how can you “upgrade” them? What is the main vulnerability of your company and you personally as a person and leader? What factors should be avoided? What can prevent you from taking advantage of opportunities and advantages to achieve your goals?

The next stage of the SWOT analysis is to compile a list of available prospects for your project. You probably already actively use some of these favorable environmental factors to promote and optimize your business; list them. Don't forget about potential opportunities. Describe the market situation in your niche. Think about what tools, means, methods and advantages can be applied to make your project unique and in demand.

After this, proceed to a description of existing external dangers and threats. Which of these factors are preventing or could prevent you from achieving your intended result? How many of your competitors, enemies, ill-wishers are there that can harm your business and prevent it from developing? In the SWOT analysis method, threats and opportunities always relate to the external environment, while strengths and weaknesses always relate to the project itself.

When all the lists have been compiled, begin to form conclusions and conclusions. They must provide answers to a number of important questions about how to competently use their strengths, how to eliminate shortcomings and problem areas, how to take advantage of new opportunities in practice, how to minimize risks and avoid dangers.

Listing, cataloging and studying these four groups of factors is not the main part of the SWOT analysis method. All the most important things happen later, when the data has already been collected and structured: finding ways to turn problems into advantages, turn weaknesses into strengths, and make external threats serve to benefit your business.

If at this stage it becomes clear exactly what measures and steps need to be taken, be sure to plan them for the near future and actively begin to implement them.

Life forces us to make decisions every day. And every decision we make, one way or another, affects our future. Our fate for years and even decades depends on some decisions. To make any important decision, you need a thorough analysis of what is happening, this is necessary both in business and in everyday life. Qualitative analysis is a very difficult matter. And despite the fact that absolutely every person needs to be able to do it, this management function is not taught in school. Today we will talk about one of the most common methods of analysis - the SWOT method.

What is SWOT analysis

SWOT analysis is a method of primary assessment of the current situation based on considering it from four sides:

• Strengths - strengths;
• Weaknesses - weaknesses;
• Opportunities - opportunities;
• Threats – threats;

Strengths and weaknesses are your internal environment, what you already have at the current moment in time. Opportunities and threats are environmental factors, they may or may not happen, it also depends on your actions and decisions.

The acronym SWOT was first used at Harvard in 1963 at a conference on business policy by Professor Kenneth Andrews. In 1965, SWOT analysis was proposed to develop a company's behavioral strategy.

SWOT analysis helps to create a structured description of a specific situation, based on this description, conclusions can be drawn. This allows you to make correct and informed decisions. SWOT analysis plays a significant role in business and should be mastered by everyone involved in personnel management and marketing.

Rules for conducting SWOT analysis

Before you begin drawing up a SWOT analysis, you need to understand a number of rules.

1. Need to choose the most specific area of ​​research. If you choose an area that is too broad, the conclusions will be unspecific and less applicable.
2. Clear separation of elementsSWOT. There is no need to confuse strengths and opportunities. Strengths and weaknesses are the internal characteristics of an organization that are within its control. Opportunities and threats are related to the external environment and are not directly subject to the influence of the organization; the organization can only change its approach and adapt to them.
3. Avoid subjectivity. It would be naive to rely on your opinion if the market does not agree with it. You may think your product is unique, but it's worth asking consumers about this first. Without them, your personal opinion has no meaning.
4. Try use the opinions of as many people as possible. The larger the sample, the more accurate the research. Remember about?
5. The most specific and precise formulations. I often ask my subordinates: “What should you do to earn more?” They almost always tell me that I need to work harder. This is not a specific formulation; it is not clear what specific actions a person should perform at what time.

Using these simple rules, you can proceed to compiling a SWOT matrix.

SWOT matrix

SWOT analysis is usually used by drawing a table, it is often called a SWOT matrix. This method of use does not depend on the global nature of the problem being solved. It doesn’t matter whether you’re deciding who to spend the weekend with or what business to invest your millions in, the essence and appearance of a SWOT analysis will remain the same. The SWOT matrix looks something like this:

The first line and first column are indicated simply for ease of understanding; they are not necessary to draw if you understand the SWOT analysis method well.

How to use SWOT analysis

So, you are faced with a certain task and you need to understand how to solve it. First of all, you need to draw a SWOT matrix. You can do this by dividing a sheet of paper into four parts. In each part you need to write as much available information as possible. It is advisable to write the more significant factors first, then move on to the less significant ones.

We analyze strengths and weaknesses

It is not surprising, but it is with the description of strengths that the most problems arise for people who take up SWOT analysis for the first time. In general, you can ask your employees, friends and acquaintances for help in assessing, but it is better to learn how to analyze yourself. Strengths and weaknesses are assessed using the same parameters.

In business, strengths are assessed primarily based on the following parameters:

• Management and human resources in general. First of all, the competence and experience of the staff;
• Having a clear system. Business processes and employee understanding of what to do;
• Finance and access to money;
• Clearly. This is a very important success factor; the lack of a sales department is a serious obstacle and a sink for other resources;
• Reasonable marketing policy;
• Availability of production costs.

When conducting a SWOT analysis of your personality, you can rely on the following criteria:

• Education and knowledge;
• Experience and your skills;
• Social connections, useful contacts and other opportunities to use administrative resources;
• Recognition and authority;
• Availability of material resources;

When analyzing your strengths, you should focus on what you like to do and what you are good at. As a rule, what we don’t like turns out worse for us.

Analysis of opportunities and threats

Opportunities and threats are created by changes in the environment and those changes that you can make personally. It is worth noting that to analyze the external situation on the market, and even more so to predict the future market, you need to have serious qualifications. It is very difficult to predict what will happen and it is worth relying primarily on current facts and trends. At the same time, when making long-term planning, it is necessary to take into account the most pessimistic scenario for the development of the situation.

Opportunities and threats in business are primarily assessed according to the following parameters:

1. Market trends. Increase or decrease in demand.
2. Economic situation in the country. In years of economic growth, business, other things being equal, will grow in proportion to the growth of the economy, and vice versa.
3. Competition, the absence of competitors today does not guarantee their absence tomorrow. The arrival of a major player in the market can turn the industry upside down.
4. Infrastructure changes. Major changes to infrastructure can result in both gains and losses.
5. Legislation and political trends. Probably, in 2003, no one imagined that within 5 years all casinos would close.
6. Technological revolutions. Progress inevitably destroys entire industries while creating new ones.

Every field of business has its own experts and professionals; to compile a high-quality SWOT matrix, you can turn to them for advice and expert opinion.

SWOT analysis methodology

So, we have a completed SWOT matrix that contains: strengths and weaknesses, as well as opportunities and threats. Based on this matrix, you need to work according to it. To do this, perform the following steps:

1. It is necessary to rank all factors according to the degree of influence;
2. All far-fetched and unimportant factors must be excluded;
3. We analyze how your strengths can help you avoid threats and achieve opportunities;
4. Let's see what impact your weaknesses can have on opportunities and threats;
5. How strengths can help improve weaknesses;
6. How can we reduce threats;

Based on the work done, you draw up the main vectors of development. SWOT analysis is primarily a tool for descriptive assessment of the situation. It does not analyze large amounts of analytics and does not compare indicators over past years. SWOT does not measure quantitatively the parameters. And that is why the SWOT method will always be a rather subjective analysis tool.

Application of SWOT analysis

The simplicity of SWOT analysis makes this tool very versatile; as we wrote above, it can be used both in life and in business. SWOT analysis is used both separately and in combination with other analysis and planning tools. SWOT analysis is most widely used in management, primarily for strategic planning of an organization's activities.

SWOT self-analysis

Separately, I would like to talk about the use of the SWOT analysis method to determine priorities in personal development. You can use this tool to determine goals both at work, for example, what area of ​​activity you should pursue, and in personal relationships.

I strongly recommend that middle and senior managers ask their subordinates to do a personal SWOT analysis at least once a year. It is also an excellent tool for determining management abilities when hiring a new employee. I first read this idea in Igor Mann’s book Number 1. Mann recommends giving SWOT to everyone who came for an interview.

Accounting